Amazon Advertising Strategy for 2025: How to Maximize Every Dollar

In 2025, Amazon advertising is no longer optional—it’s foundational. As one of the fastest-growing digital ad platforms, Amazon continues to attract brands of all sizes with its rich data, built-in purchase intent, and ever-evolving suite of ad products. Whether you’re a startup looking to grow or an established brand wanting to scale, a strategic Amazon advertising approach is key to winning visibility and driving ROI.

In this guide, we’ll break down the core components of a high-performing Amazon advertising strategy: from selecting the right campaign types to budget allocation and targeting tactics. Let’s dive in.

Amazon Advertising Campaign Types: Which One Should You Choose?

Amazon advertising offers a variety of formats to match different goals across the funnel. Here are the core types:

Sponsored Products

The most widely used ad type. These appear in search results and product detail pages and are keyword or ASIN-targeted.

Use for: boosting visibility of individual listings, new product launches, and converting high-intent traffic.

Sponsored Brands

Feature your brand logo and multiple products in a banner-style ad at the top of search results.

Use for: building brand awareness and promoting complementary products.

Sponsored Display

Display ads target audiences both on and off Amazon using behavioral signals.

Use for: remarketing, cross-selling, and reaching customers browsing similar products.

Amazon DSP (Demand-Side Platform)

Programmatic ads shown across Amazon-owned and third-party sites and apps.

Use for: full-funnel campaigns, OTT advertising, and granular audience targeting.

👉 Explore the official Amazon Ads blog for new campaign type announcements and real-world examples.

Amazon Advertising Budgeting Strategies to Maximize ROI in 2025

Setting the right budget is a balance between ambition and efficiency. Here’s how to do it right:

• Start with your ACOS targets (advertising cost of sale). What % of revenue are you willing to spend on ads?
• Allocate budgets by lifecycle: more spend for launches, moderate for mature products.
• Use dayparting to control spend during peak conversion times.
• Test incrementally: start small, test new formats, and scale what works.

Amazon’s advertising ecosystem is increasingly competitive. Brands must be willing to invest—but also know when and where to dial in.

📊 See Amazon advertising revenue growth to understand where your competitors are likely investing.

How to Use Sponsored Products, Brands, and Display Ads on Amazon

Each ad type plays a unique role in the buyer journey. The best strategies combine them:

• Upper funnel: Use Sponsored Brands or Amazon DSP to build awareness
• Mid-funnel: Use Sponsored Display to retarget visitors and maintain visibility
• Bottom funnel: Use Sponsored Products to drive conversions

Optimize your mix based on your category, product lifecycle, and performance metrics. For example, if you’re selling consumables, repeat purchases can justify more top-of-funnel spend.

Scaling Your Amazon Advertising Strategy Effectively

Once you’ve validated your campaigns, it’s time to scale. Here’s how:

• Use Amazon Marketing Cloud (AMC) to get insights on multi-touch attribution
• Leverage negative keywords to eliminate wasteful spend
• Automate with rules-based bidding or a trusted Amazon PPC tool
• Expand to international marketplaces if your fulfillment supports it

📚 Visit Seller Central’s advertising help hub for policy guidance and optimization tips.

Final Thoughts

Your Amazon advertising strategy in 2025 needs to do more than just get you seen—it has to convert, scale, and sustain profitability. By aligning campaign types with customer intent, using your budget wisely, and scaling smart, brands can turn advertising from a cost center into a true growth engine.

Looking to take your Amazon advertising to the next level? GoAmify’s team of marketplace experts helps brands build and execute full-funnel strategies that convert.

Let’s talk.